US RATE FUTURES-Slash prospects for big Fed ease

CHICAGO, Jan 24 (Reuters) - U.S. short-term interest rate futures fell heavily on Thursday, trimming the implied chances for another big Federal Reserve rate cut at next week's policy meeting.

News from Europe of a multi-billion-euro loss at French bank Societe Generale, blamed on a single rogue trader, undermined ideas that the Fed will need to move again to prop up U.S. and global equities markets.

The implied chances for another 50 basis point rate cut from the Federal Open Market Committee next week fell toward 70 percent after being fully priced late on Wednesday.

The market may consider that the Fed gave the market a "free" 75 basis point interest rate cut on Tuesday and be less inclined to move rates again, according to analysis from Bear Stearns.

The sell-off was also tied to lower-than-expected weekly jobless claims that suggested the U.S. labor market -- seen as a key variable for Fed policy -- might not be as weak as some had assessed.

Claims of 301,000 were the lowest since the week ended Sept. 22 and well below the Wall Street consensus of 325,000.

"With the data not corroborating (Wall) Street beliefs that the economy is in recession, suggesting further hefty Fed easing may not be appropriate, many are taking chips off the table," strategists at Action Economics said in a research note. (Reporting by Ros Krasny; Editing by James Dalgleish)